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5. Problems and Applications Q5 Jake owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $41 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Jake's supply schedule. Quantity Supplied. Price $1 or less $1 to $4 $4 to $7 $7 to $9 More than $9

5. Problems and Applications Q5 Jake owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $41 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Jake's supply schedule. Quantity Supplied. Price $1 or less $1 to $4 $4 to $7 $7 to $9 More than $9

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter21: Costs And The Supply Of Goods
Section: Chapter Questions
Problem 3CQ
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S. Problems and Applications Q5 Jake owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $41 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Jake's supply schedule. Quantity Supplied Price $1 or less $1 to $4 $4 to $7 $7 to $9 More than $9
Transcribed Image Text:S. Problems and Applications Q5 Jake owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $41 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Jake's supply schedule. Quantity Supplied Price $1 or less $1 to $4 $4 to $7 $7 to $9 More than $9
Based on Jake's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Price of Water 10 8 3 2 1 2 3 Quantity of Water Suppose the price of a bottle of water is $5. In this case, Jake receives 4 If the price rises to $8, Jake now sells Jake's Supply Price $5 Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Jake's producer surplus. bottles of water. This ➡ Quantity Sold Producer Surplus in producer surplus from his water sales. This producer surplus to
Transcribed Image Text:Based on Jake's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Price of Water 10 8 3 2 1 2 3 Quantity of Water Suppose the price of a bottle of water is $5. In this case, Jake receives 4 If the price rises to $8, Jake now sells Jake's Supply Price $5 Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Jake's producer surplus. bottles of water. This ➡ Quantity Sold Producer Surplus in producer surplus from his water sales. This producer surplus to
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